Where Institutional Logics of Corporate Governance Collide: Overstatement of Compliance in a Developing Country, Bangladesh

Abstract Manuscript Type Empirical. Research Question/Issue How do conflicting institutional logics predict and explain the overstatement of corporate governance compliance in a developing country? Research Findings/Insights A unique opportunity to study overstatement of compliance is available through checklists published in annual reports by companies in Bangladesh. A data set contrasting with that available from checklists is collected by a confidential survey of company secretaries. Overstatement of compliance with the country's Corporate Governance Guideline issued in 2006 is measured by comparing the published compliance with that revealed by the survey. There is significant overstatement of compliance in annual reports, particularly with respect to the less directly observable provisions of the Guideline. The overstatement is positively associated with control by a sponsor…